M351 Notes-Day 10 Pensions 1

M351 Notes-Day 10 Pensions 1 - M351 Notes, Class 10:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
M351 Notes, Class 10: Pensions and OPEB, pages 1048-1067 A. Pensions benefits are earned while an employee works and paid after the employee retires. B. The employer of the workers who will receive pension benefits creates the pension plan and is responsible for funding the pension plan, a separate entity, who will pay the worker pensions. C. The pension plan is responsible for investing employer contributions until the contribution plus investment earnings are paid to the retired worker. D. There are two kinds of pension plans: (1) a defined contribution plan and (2) a defined benefit plan. 1. Defined contribution plan —employer makes a contracted payment to a pension plan for each employee. The employee usually can direct how the employer contributions are invested. A 401(k) plan is a typical defined contribution plan. Employer expense is the amount contributed to the pension plan. Pension expense. ...................................... xxx Cash (paid to pension plan). ................. xxx
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

M351 Notes-Day 10 Pensions 1 - M351 Notes, Class 10:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online